PetroChina signs Sumatra exploration deal

Singapore Exchange firm Ramba Energy Limited announced on Tuesday that Lemang PSC block partnership have inked a Technical Assistance Agreement (TAA) with PetroChina International Jabung Ltd (PC Jabung) for the provision of oil and gas technical services for the Lemang Block located in the Jambi and Riau Provinces of Sumatra.

?The latest agreement will bring PetroChina?s invaluable expertise and technology to the development and operation of the Lemang Block. On top of the expertise and technology, with PetroChina?s Jabung field just to the south of the Lemang Block, we can expect to benefit the Lemang Block in terms of time, cost and economies of scale,? says Aditya Wisnuwardana Seky Soeryadjaya, Executive Director and CEO of Ramba Energy.

He did not give further detail about the TAA?s terms and condition.

Ramba announced last week conditional acquisition of 41 percent stake at Lemang for US$7 million. Other partners in the blocks are: PT Hexindo Gemilang Jaya and Super Power Enterprises Group Limited.

Based on a joint study with Hexindo and the Institut Teknologi Bandung, the Lemang Block is expected to have Original Oil in Place of approximately 190 million barrels of oil and Original Gas in Place of approximately 180 BCF. The expected economic value for the Lemang Block is approximately $187.7 million, comprising $172.3 million for oil and $15.4 million for gas, the company said.(alex)